Essar Shipping Ports & Logistics Limited has announced a 38% rise in its total income for the first quarter of the financial year 2008-09 on a consolidated basis as compared to the corresponding quarter of 2007-08. The Company has recorded a total income of Rs. 637.72 crores (USD 147.86 million) during the first quarter of 2008-09 as against Rs. 462.54 crores (USD 112.73 million) during the corresponding quarter of the financial year 2007-08. The EBITDA for the Company for the first quarter grew by 107% over the corresponding quarter of the financial year 2007-08 at Rs. 193.33 crores (USD 44.82 million). The company registered Profit Before Tax (PBT) of Rs 36.88 crores (USD 8.55 million) as compared to Rs 37.05 crores (USD 9.03 million) for the corresponding quarter. The Company registered a Net Loss of Rs. 72.75 crores (USD 16.87 million) compared to Profit after Tax (PAT) of Rs. 83.42 crores (USD 20.33 million) for the corresponding quarter of 2007-08. This was primarily due to a notional currency loss of Rs. 93.59 crore (USD 21.70 million) and the increase in interest cost on account of operation of the terminal. The Company achieved a growth of 63% in Cash Profit which stood at Rs. 94.96 crores (USD 22.02 million) during the quarter as compared to Rs. 58.09 crores (USD 14.16 million) during the corresponding quarter in the previous year even after providing for increased in Interest cost during the quarter.

Company & Market Update

Ports & Terminals:
During the quarter, Vadinar Oil Terminal Limited (VOTL) handled 4.43 million tonnes of cargo representing a 16% annualized growth. The work on the expansion to 34 mmtpa has commenced. The demand and utilization of VOTL terminal remained buoyant due to higher utilization by the refinery on the back of strong worldwide demand for refined products.

Logistics:
During the quarter, Essar Logistics Limited handled 5.57 million tones of cargo an increase of 11% over the corresponding quarter. The increase in demand was due to increase in shipments of finished steel and oil products.

Sea Transportation:
The Company has contracted to acquire two Supramax dry bulk carriers under Bare Boat Cum Demise agreements to perform Contracts for Affreightments (COA’s) for transportation of coal. The Company also sold one Suezmax tanker and scrapped one Product tanker during the quarter.

The spot rates in the tanker segment and the bulk segment continue to be strong on account of increased demand for shipping for crude oil, oil products and iron ore.

Oilfield Services:
The merger of India Shipping (the 100% holding company of Essar Oilfields Services Limited) with the Company is expected to be completed by end October 2008.

Essar Shipping Ports & Logistics Limited (ESPLL) is a complete end-to-end transportation solutions service provider encompassing the areas of sea transportation, ports & terminals, logistics and oilfield services. Together with creating value for its stakeholders, the move will result in disciplined and focused investments aimed at maximizing returns.

The above results were taken on record at the meeting of the Board of Directors held on July 29, 2008.

About Essar Global
Essar Global Limited is a diversified business group operating in the sectors of Steel, Energy, Power, Communication, Shipping Ports & Logistics, Mining & Minerals, and Construction. EGL has a firm value of over USD 50 billion and employs 38,000 people worldwide. The company has operations and investments in India, Canada, USA, Africa, the Middle East, the Caribbean and South East Asia.

About Essar’s Shipping Ports & Logistics business group:
Essar Shipping Ports & Logistics Limited (ESPLL) is an end-to-end logistics provider with wet and dry bulk ports and terminals services, sea and surface transportation services, contract onshore and offshore drilling services. The businesses comprise:

i) Essar Ports & Terminals Limited (EPTL)
EPTL, a wholly owned subsidiary of ESPLL, is the holding company of the Ports & Terminals business of ESPLL. EPTL currently has the following subsidiaries:

a) Vadinar Oil Terminal Limited (VOTL): VOTL is a provider of crude oil and petroleum products storage and distribution services. The Company owns an all weather, deep-draft port and terminal facilities to handle the receipt, storage and dispatch of crude oil and petroleum products at Vadinar in Jamnagar, Gujarat

b) Essar Bulk Terminal Limited (EBTL): EBTL is constructing an all-weather deep-draft port at Hazira capable of handling up to 105,000 dwt bulk carriers to import iron ore, pellets, coal, limestone, etc. and export finished steel products. The facilities will include a dedicated all-weather channel, 550 metre long jetty, ship unloaders, storage facilities for finished steel products, conveyors for transportation of the raw materials to the stack house and a rail network

c) Essar Bulk Terminal (Salaya) Limited: Essar Bulk Terminal (Salaya) Limited has been incorporated to set up a 20 million tonnes port facility at Salaya, Gujarat. This would include an integrated terminal facility capable of handling coal and pet coke used in power generation plants.

ii) Essar Logistics Limited (ELL)
ELL is a provider of logistics, stevedoring and lighterage services to various corporations in India. The Company owns material handling, lighterage and mobile equipments for efficient jetty operations and a fleet of dedicated trailers and tankers to cater to the movement of steel and petroleum products.

iii) Sea Transportation:
ESPLL owns and operates a fleet of 25 vessels with a total deadweight tonnage of 1.4 million and is in the business of providing crude oil and transportation and transportation management services and integrated dry bulk and petroleum products transportation services.

iv) Essar Oilfield Services Limited (EOSL)
EOSL offers onshore and offshore contract drilling services. It currently owns and operates a fleet of 13 drilling rigs, including the Essar Wildcat, a third generation semi- submersible offshore rig, which is deployed off the East Coast of India. The rest of the land rigs are deployed in Brazil and India.

Unaudited Financial Results for the quarter ended 30th June 2008 (Consolidated / Standalone)

For more information, please contact
Sharad Goel, Group Head-Media Relations, Essar, Mumbai, India email: goels@essar.com
Mohan Nair, General Manager, Essar Shipping, India at +91 98339 45779
Parikshit Kaul, Dy. General Manager, Essar, New Delhi, at +91 98735 70816
William Clutterbuck, Maitland, UK: +44 207 379 5151